#THE INDIAN TRAMWAYS ACT, 1886 
__________ 

##ARRANGEMENT OF SECTIONS 
__________ 

###PRELIMINARY 

SECTIONS 

1. Short title and commencement. 
2. Local extent. 
3. Definitions. 

###ORDERS AUTHORISING THE CONSTRUCTION OF TRAMWAYS 

4. Application for and consent necessary to making of order. 
5. Consent of local or road-authority not necessary in certain cases. 
6. Procedure for making order. 
7. Contents of order. 
8. Further order. 
9. Power to authorise joint work by local authorities. 
10. Cessation of powers given by an order. 

###CONSTRUCTION AND MAINTENANCE OF TRAMWAYS 

11. Mode of formation of tramway. 
12. Inspection of tramway before opening. 
13. Agreement between road-authority and promoter as to repair of roadway. 

###TRAFFIC ON TRAMWAYS 

14. Rights of promoters and the public over tramways. 
15. Tolls leviable by promoter or lessee. 
16. Carriage of dangerous or offensive goods. 

###LICENSES TO USE TRAMWAYS 

17. Grant to third parties of licenses to use tramway in certain events. 
18. Licensee to give to promoter or lessee an account of traffic. 

###DISCONTINUANCE OF TRAMWAYS 

19. Cessation of powers of promoter and lessee on discontinuance of tramway. 
20. Powers of road-authority on cessation of powers of promoter. 

###INSOLVENCY OF PROMOTER 

21. Proceedings in case of insolvency of promoter. 

###PURCHASE OF TRAMWAYS 

22. Future purchase of undertaking by local authority. 

###WORKING OF TRAMWAYS OWNED BY LOCAL AUTHORITIES 

23. Lease of, or working of, tramway by local authority. 

###RULES 

24. Power to make rules. 
25. Power to impose penalty by rule. 
26. Procedure for making, and publication of, rules. 

###OFFENCES 

27. Penalty for failure of promoter, lessee or licensee to comply with act or order. 
28. Penalty for obstructing promoter in exercise of his powers. 
29. Penalty for interfering with tramway. 
30. Penalty for using tramway with carriage having flange-wheels. 
31. Penalty for evading payment of proper toll. 
32. Penalty for taking or sending dangerous or offensive goods without giving notice. 
33. Penalty for licensee not giving to promoter or lessee an account of traffic or giving false account. 
34. Saving of prosecutions under other laws. 

###SETTLEMENT OF DIFFERENCES 

35. Differences between promoters or lessees and authorities. 

###RECOVERY OF TOLLS 

36. Recovery of moneys due from promoters and, in certain cases, from lessees. 
37. Recovery of tolls from licensees. 
38. Recovery of tolls from passengers. 

###SAVINGS 

39. Promoter to have right of user only. 
40. Saving of power over roads traversed by tramways. 
41. Saving of power of local authority and police to regulate traffic on roads. 

###SUPPLEMENTAL PROVISIONS 

42. Promoters, lessees and licensees to be responsible for all injuries. 
43. Want of funds not a sufficient reason for default. 
44. Power to exempt from municipal taxation. 
45. Application by local authorities of local funds to tramways. 
46. Extension of Act to existing tramways. 
47. Prohibition of construction of tramways except under this Act. 
48. Transfer of control on exclusion of local area from circle of local authority. 
49. [Repealed.]. 
50. Powers of Government exercisable from time to time. 



#THE INDIAN TRAMWAYS ACT, 1886 

##ACT NO. 11 OF 1886 

[12th March, 1886.] 

An Act to facilitate the construction and to regulate the working of tramways. 

  WHEREAS it is expedient to facilitate the construction and to regulate the working of tramways; It is 
hereby enacted as follows:— 

###PRELIMINARY 

1. **Short title and commencement.**—(1) This Act may be called the Indian Tramways Act, 1886; and 

(2) It shall come into force at once. 

2. **Local extent.**—(1) It  extends  in  the  first  instance  to the  whole  of  India  except the territories 
which, immediately before the 1st November, 1956, were comprised in Part B States and the territories 
which were on the 12th March, 1886, respectively, administered by the Governor of Fort Saint George in 
Council, the Governor of Bombay in Council and the Lieutenant-Governor of Bengal. 

  (2) This Act may by notification in the Official Gazette be extended to the whole or any part of the 
said territories by the State Government concerned.

3. **Definitions.**—In this Act, unless there is something repugnant in the subject or context,— 

(1) “local authority” means a municipal committee, district board, body of port commissioners or 
other authority legally entitled to , or entrusted by the Central Government or any State Government 
with, the control or management of a municipal or local fund: 

(2) “road” means the way of a road, street, thoroughfare, passage or place along or across which a 
tramway  authorised  under  this  Act  is,  or  is  intended  to  be,  laid,  and  includes  the  surface-soil  and 
sub-soil  of  a  road,  and  the  footway,  berms,  drains  and  ditches  of  a  road,  and  any  bridge,  culvert  or 
causeway forming part of -a road: 

(3) “road-authority”, in relation to a road, means— 

  (a) if a local authority maintains and repairs the road, then that authority; 

  (b) if a local authority does not maintain and repair the road, and the road is neither vested in 
Government nor maintained and repaired by Government, then the person in whom the road 
is vested; and 

  (c) if  a  local  authority  does  not  maintain  and  repair  the  road,  and  the  road  is  vested  in 

  Government or maintained and repaired by Government, then the Government for whose 
purposes a road is so vested or by which the road is maintained and repaired, as the case may be: 

(4) “circle”, in relation to a local authority or road-authority, means the area within the control of 
that authority: 

(5) “tramway” means a tramway having one, two or more rails, and includes— 

  (a) any  part  of  a  tramway,  or  any  siding,  turnout,  connection,  line  or  track  belonging  to  a 
tramway; 

  (b) any electrical equipment of a tramway; and 

  (c) any  electric  supply-line  transmitting  power  from  a  generating  station  or  substation  to  a 
tramway  or  from  a  generating  station  to  a  sub-station  from  which  power  is  transmitted  to  a 
tramway:

(6) “order” means an order authorising the construction of a tramway under this Act, and includes a 
further order substituted for, or amending, extending or varying, that order: 

(7) “promoter”  means a local authority  or  person in  whose favour  an  order  has been  made, and 
includes a local authority or person on whom the rights and liabilities conferred and imposed on the 
promoter  by  this  Act  and  by  the  order  and  any  rules  made  under  this  Act  as  to  the  construction, 
maintenance and use of the tramway, have devolved: 

(8) “undertaking”  includes  all  moveable  and  immoveable  property  of  the  promoter  suitable  to  and 
used by him for the purposes of the tramway: 

(9) “carriage”, in the case of a tramway on which steam-power or any other mechanical power or 
electrical power is  used,  includes an  engine  worked on  the  tramway  for the  purpose  of  producing or 
utilising that power: 

(10) “toll” includes any charge leviable in respect of the use of a tramway: 

(11) “lessee” means a person to whom a lease has been granted of the right of user of a tramway and 
of demanding and taking the authorised tolls: 

(12) “District  Magistrate”  includes  an  officer  empowered  by  the Government by  name  or  by 
virtue of his office to discharge within any local area all or any of the functions of a District Magistrate 
under this Act: 

(13) “District  Court”  means  a  principal  Civil  Court  of  original  jurisdiction,  and  includes  a  High 
Court having ordinary original civil jurisdiction: 

(14) “Collector” means the chief officer in charge of the revenue-administration of a district, 
and  includes  an  officer  empowered  by  the Government by  name  or  by  virtue  of  his  office  to 
discharge within any local area the functions of a Collector under this Act: 

(15) “prescribed” means prescribed by rules made by the Government under this Act: and 

(16) “Government”, in  relation to  a tramway  which is  wholly  within  a  municipal 
area  or  which  is  declared  not  to  be  a  railway  under  clause  (20)  of  article  366  of  the 
Constitution, means the State Government and, in relation to any other tramway, means the Central 
Government.

###ORDERS AUTHORISING THE CONSTRUCTION OF TRAMWAYS 

4. **Application for and consent necessary to making of order.**—(1) The Government may 
make an order authorizing the construction of a tramway in a circle on application made— 

  (a) by the local authority of the circle with the consent of the road-authority of any road or part 
of a road which is to be traversed by the tramway and of which the local authority is not itself the 
road-authority; or 

  (b) by any person with the consent of the local authority of the circle, and of the road-authority of 
any road or part of a road which is to be traversed by the tramway and of which the local authority is 
not the road-authority. 

(2) A  local  authority  shall  not  make  an  application  for  an  order,  or  be  deemed  to  consent  to  an 
application being made by any person for an order, unless the making of the application or the giving of 
the consent has been approved by the local authority in manner prescribed. 

5. **Consent of local or road-authority not necessary in certain cases.**—When it is proposed 
to lay a tramway in two or more circles, and a local authority or road-authority having control in either or 
any of the circles does not consent thereto, or attaches conditions to its consent, the Government may, 
nevertheless,  make  an  order  authorising  the  construction  of  the  tramway  in  the  circle,  or  by  the  order 
impose  on  the  promoter  any  conditions  which  it  deems  fit,  if,  utter  considering  the  reasons  of  the 
authority for withholding its consent or attaching the conditions thereto, it is satisfied that the construction 
of  the  tramway  in  the  circle  is  expedient,  or,  as  the  case  may  be,  that  the  conditions  attached  by  the 
authority to its consent ought not to be imposed. 

6. **Procedure for making order.**—(1) The Government on receiving an application shall consider 
it, and, if satisfied as to the propriety of proceeding thereon, publish in the Official Gazette, and in such 
other  manner  as  it  deems  sufficient  for  giving  information  to  persons  interested,  a  draft  of  a  proposed 
order authorizing the construction of the tramway. 

(2) A  notice  shall  be  published  with  the  draft  stating  that  any  objection  or  suggestion  which  any 
person may desire to make with respect to the proposed order will, if submitted to the Government on 
or before a date to be specified in the notice, be received and considered. 

(3) If, after considering any objections or suggestions which may have been made with respect to the 
draft  on  or  before the  date  so specified,  the Government is of  opinion  that  the  application  should  be 
granted, with or without addition or modification, or subject or not to any restriction or condition, it may 
make an order accordingly. 

(4) Every order authorising the construction of a tramway shall be published in the Official Gazette in 
English,  and  in  the  other  prescribed  language  or  languages,  if  any;  and  that  publication  shall  be 
conclusive proof that the order has been made as required by this section. 

7. **Contents of order.**—(1)  An  order  made  under  section  6  shall  empower  the  promoter  therein 
specified  to  construct  and  maintain  the  tramway  therein  described  in  the  manner  therein  provided,  and 
shall specify the time within which the tramway shall be commenced and the time within which it shall be 
completed and opened for public traffic. 

(2) The order may also provide, in manner consistent with this Act, for all or any of the following, 
among other matters, that is to say:— 

  (a) a  period  before  the  expiration  of  which  the  tramway  shall  not  be  commenced,  and  the 
conditions  subject  to  which  the  local  authority,  when  it  is  not  itself  the  promoter,  may,  within  that 
period elect to be substituted in the place of the promoter in respect of the undertaking or of so much 
thereof as is within its circle; and the limits of time within which, and the terms upon which, the local 
authority  may,  after  the  tramway  has  been  constructed,  require  the  promoter  to  sell  to  it  the 
undertaking or so much thereof as is within its circle; 

  (b) the acquisition by the promoter of land for the purposes of the tramway, and the disposal by 
him of land which has been acquired but is no longer required for those purposes; 

  (c) the conditions subject to which roads may be opened and broken up for the purposes of the 
construction or maintenance of the tramway or any part thereof, and the method of, and materials to 
be  used  in,  the  reinstating  of  the  roads,  and  the  approval  of  the  method  and  materials  by  the 
Government or the road-authority before the commencement of the work; 

  (d) the conditions on which the tramway may be constructed over a bridge or across a railway or 
tramway when the carriage-way over the bridge is to form part of the tramway or when the tramway 
is to cross a railway or another tramway on the level; 

  (e) the space which shall ordinarily intervene between the outside of the carriage-way on either 
side of a road whereon the tramway is to be constructed, and— 

     (i) in the case of a tramway having one rail, the rail of the tramway, or 

     (ii) in the case of a tramway having two or more rails, the nearest rail of the tramway, 
and the conditions on which a smaller space may be permitted;

  (f) the gauge of the tramway, the rails to be used, and the mode in which, and the level at which, 
they  shall  be  laid  and  maintained;  and  the  adoption  and  application  by  the  promoter  of  such 
improvements in the rails, and in their situation, and in the sub-structure upon which they rest, as the 
Government may from time to time require; 

  (g) the portion of the road or roads traversed by the tramway to be kept in repair by the promoter; 
the  maintenance  by  the  promoter  to the  satisfaction of  the Government, or  the  road-authority,  or 
both, of that portion of the road or roads; and the liability of the promoter, on the requisition of the 
Government,  from  time  to  time  to  adopt  and  apply  such  improvements  in  the  tramway  as  the 
Government may consider necessary or desirable for the safety or convenience of the public, and to 
alter the position or level of the tramway to suit future alterations in the road or roads; 

  (h) the application of material excavated by the promoter in the construction or maintenance of 
the tramway; 

  (i) the  provision  of  such  crossings,  passing-places,  sidings,  junctions  and  other  works,  in 
addition to those specified in or authorised by the order, as may from time to time be necessary or 
convenient to the efficient working of the tramway; 

  (j) the  powers  which  may  from  time  to  time  be  exercised  by  the Government, the  local 
authority,  the  road-authority  or  any  person  in  respect  of  sewers,  drains,  telegraph-lines,  gas-pipes, 
water-pipes or other things in or on land occupied by the tramway; the notice (if any) to be given of 
the intended exercise  of those  powers;  the  manner in  which the  powers shall be  exercised;  and  the 
extent to which the tramway and the traffic thereon may be interfered with in the exercise thereof; 

  (k) the conditions subject to which the promoter may from time to time interfere with, or alter or 
require the alteration of the position of, drains (not being sewers or main drains), telegraph-lines, gas-
pipes, water-pipes or other things as aforesaid; 

  (l) the  provision  of  a  temporary  tramway  in  place  of  a  part  of  a  tramway  which  has  been 
removed, or of which the use has been discontinued by reason of the execution of any work affecting 
a  road  along  which  the  part  of  the  tramway  was  laid,  or  by  reason  of  the  use  of  the  road  being 
interrupted by floods or other cause; 

  (m) the motive power to be used on the tramway, and the conditions on which steam-power or 
any other mechanical power or electrical power may be used; 

  (n) the nature, dimensions, fittings, appliances and apparatus of the carriages to be used on the 
tramway,  and  the  inspection  and  examination  thereof  by  officers  of  the Government or  the  local 
authority, and the liability of the promoter or lessee, on the requisition of the Government, from 
time to time, to adopt and apply such improvements in the carriages, and in the fittings, appliances 
and  apparatus,  as  the Government may consider necessary  or  desirable  for  the  safety  or 
convenience of the public; 

  (o) the traffic which may be carried on the tramway, the traffic which the promoter or lessee shall 
be  bound  to  carry,  and  the  traffic  which  he  may  refuse  to  carry;  the  tolls  to  be  leviable  by  the 
promoter or lessee, and the periodical revision thereof by the Government; and the regulation of the 
traffic and of the levy of the tolls; 

  (p) the use of the tramway free of toll by the local authority, with its own carriages, for specified 
purposes,  during  specified hours,  with  power  to  the local  authority  to  make  such  sidings  and  other 
works as may be necessary for communication between its premises and the tramway; 

  (q) the  conditions  subject  to  which  the  promoter  may  transfer  the  undertaking,  or  any  part 
thereof, by sale, mortgage, lease, exchange or otherwise; and the conditions subject to which the local 
authority may be the transferee; 

  (r) the performance by the Government or by the local authority or road-authority of any work 
required by the Act or the order to be done by the promoter; and 

  (s) the penalty to be incurred by the promoter or lessee for failure to observe any condition or 
direction contained in ,the order, and the application of the penalty when recovered. 

(3) The Government may, in providing in the order for the acquisition of land for the purposes of a 
tramway of which the promoter is not a company, direct that land may be acquired for the promoter under 
the  provisions  of  the  Land  Acquisition  Act,  18703 (10  of  1870),  in  the  same  manner  and  on  the  same 
conditions as it might be acquired for the purposes of the tramway if a company were the promoter. 

(4) The order shall imply the condition— 

  (a) in the case of a tramway of which a local authority is the promoter, that a lease thereof shall be 
granted only in manner by this Act provided; and 

  (b) in the case of a tramway of which a local authority is not the promoter, that a lease thereof shall 
be only of the right of user and of demanding and taking the authorized tolls, and shall not confer or 
impose  on  the  lessee  any  of  the  powers  or  duties  of  the  promoter  in  respect  of  the  construction  or 
maintenance of the tramway. 

8. **Further order.**—(1) The Government may, on the application of promoter, revoke, amend, 
extend or vary the order by a further order. 

(2) An  application  for  a  further  order  shall  be  made  in  the  same  manner  and  subject  to  the  same 
conditions as an application for an order. 

(3) The Government may, in its discretion, either grant or reject the application. 

(4) If it grants the application, it shall make the further order in the same manner as an order, except 
that no addition to, or modification of, the rights, powers and authorities asked for in the application, or 
restriction  or  condition  with  respect thereto, shall  be made  or  imposed  by  the  further  order  without  the 
consent in writing of the promoter. 

9. **Power  to  authorise  joint  work  by  local  authorities.**—(1)  Subject  to,  and  in  accordance 
with,  the  provisions  of  this  Act, the Government may,  on  a  joint  application,  or  on  two  or  more 
separate  applications,  make  an  order  empowering  two  or  more  local  authorities,  respectively, jointly  to 
construct the whole, or separately to construct parts, of a tramway, and jointly or separately to own the 
whole or parts thereof. 

(2) All the provisions of this Act which relate to the construction of tramways shall extend and apply 
to the construction of the whole and the separate parts of the tramway, and the form of the order may be 
adapted to the circumstances of the ease. 

10. **Cessation of powers given by an order.**—(1) If a promoter authorised by an order to construct a 
tramway— 

  (a) does not within the time specified in the order substantially commence the construction of the 
tramway, or 

  (b) having commenced the construction, suspends it without a reason sufficient in the opinion of 
the Government to warrant the suspension, or 

  (c) does  not  within  the  time  specified  in  the  order  complete  the  tramway  and  open  it  for  public 
traffic, 

the following consequences shall ensue:— 

     (i) the powers given by the order to the promoter for constructing the tramway  and otherwise in 
relation thereto shall, unless the Government, by special direction in writing, prolongs the time or 
condones  the  suspension,  cease  to  be  exercised  except  as  to  so  much  of  the  tramway  as  is  then 
completed; 

     (ii) as to so much of the tramway as is then completed, the Government may either permit, or 
refuse to permit, the powers given by the order to continue; 

     (iii) if the Government refuses to permit the powers to continue, then so much of the tramway 
as is then completed may be dealt with, under the provisions of this Act relating to the discontinuance 
of  tramways,  as  a  tramway  of  the  working  whereof  the  discontinuance  has  been  proved  to  the 
satisfaction of the Government. 

(2) A notification published by the Government in the Official Gazette to the effect that on a date 
specified  in  the  notification  the  construction  of  a  tramway  had  not  been  substantially  commenced  or  a 
tramway had not been completed and opened for public traffic, or that the construction of a tramway had 
been suspended without sufficient reason, shall, for the purposes of this section, be conclusive proof of 
the matter stated therein. 

###CONSTRUCTION AND MAINTENANCE OF TRAMWAYS 

11. **Mode of formation of tramway.**—A tramway shall be constructed and maintained in the manner 
provided by the order. 

12. **Inspection of tramway before opening.**—A  tramway,  or  portion  of  extension  of,  or 
addition to, a tramway, shall not be opened for public traffic until it has been inspected and certified to 
be fit for such traffic by an engineer appointed by Government. 

13. **Agreement between road-authority and promoter as to repair of roadway.**—Subject to the 
provisions  of  any  order  for  the  time  being  in  force  with  respect  to  the  matters  mentioned  in  section  7, 
sub-section  (2),  clause  (g),  the  road-authority  and  the  promoter  may  from  time  to  time  enter  into 
agreements as to the keeping in repair of the whole or a part of a road traversed by a tramway, and as to 
the proportion to be paid by either of them of the expense of keeping the road or part in repair. 

###TRAFFIC ON TRAMWAYS 

14. **Rights  of  promoters  and  the  public  over  tramways.**—(1) The promoter  of  a  tramway  shall, 
subject to the provisions of sub-section (2) and to the other provisions of this Act and of the order, have 
the exclusive use of the tramway for carriages with flange-wheels or other wheels suitable to run on the 
rail described in the order as the rail to be used on the tramway: 

  Provided that nothing in this Act or in the order or any rule made under this Act shall affect the right 
of any person authorised to use a tramway or railway to pass across a tramway constructed under this Act 
with carriages having wheels suitable to run on the rail thereof. 

(2) The public shall have a right to pass along or across any part of a road along or across which a 
tramway is constructed, whether on or off the tramway, with carriages not having flange-wheels or other 
wheels suitable to run on the rail of the tramway: 

Provided— 

  (a) that this sub-section shall not apply where the tramway is constructed on land the right to the 
exclusive possession of which has been acquired by the promoter; and 

  (b) that the Government may by an order authorize the construction of a tramway on any part of 
a road with rails raised above the surface of the road, if it is satisfied that the convenience of the public 
will not be injuriously affected thereby. 

15. **Tolls  leviable  by  promoter  or  lessee.**—(1)  The  promoter  or  lessee  may  demand  and  take,  in 
respect of the tramway, tolls not exceeding the limits specified in or determinable under the order, or, if 
the order contains no provision in this behalf, then such sums as may from time to time be fixed by the 
promoter or lessee with the previous sanction of the Government. 

(2) A list of all the tolls authorized to be levied shall be exhibited, in such languages as the District 
Magistrate  may  direct,  in  a  conspicuous  place  inside  and  outside  each  of  the  carriages  used  upon  the 
tramway. 

16. **Carriage of dangerous or offensive goods.**—(1)  A  person  shall  not  be  entitled  to  carry  or  to 
require  to  be  carried,  on  a  tramway  constructed  under  this  Act,  any  goods  of  a  dangerous  or  offensive 
nature. 

(2) A  person  taking  such  goods  with  him  on  the  tramway  shall,  before  entering  the  carriage,  give 
notice of their nature to the servant of the promoter or lessee in charge of the carriage. 

(3) A person sending such goods by the tramway shall distinctly mark their nature on the outside of 
the package containing them, or otherwise give notice thereof in writing to the servant of the promoter or 
lessee with whom he leaves them for the purpose of their being sent by the tramway. 

(4) Any servant of the promoter or lessee may refuse to carry upon the tramway a parcel which 
he  suspects  to  contain  goods  of  a  dangerous  or  offensive  nature  and,  if  any  such  parcel  has  been 
received for the purpose of being carried upon the tramway, may stop the transit thereof until he is 
satisfied as to the nature of its contents. 

(5) Where a servant of the promoter or lessee refuses under sub-section (4) to carry a parcel which has 
been received for the purpose of being carried upon the tramway, he shall, as soon as may be, give notice 
of his refusal to the consignor or consignee if he refuses at a time when neither of them is present. 

###LICENSES TO USE TRAMWAYS 

17. **Grant  to  third  parties  of  licenses  to  use  tramway  in  certain  events.**—If, at  any  time  after  a 
tramway  or  part  of  a  tramway  has  been  for  three  years  opened  for  public  traffic  in  a  circle,  the  local 
authority  of  the  circle  represents  in  writing  to the Government that  the  public  is  deprived  of  the  full 
benefit of the tramway or of the part thereof, the Government may, if after considering any statement 
which  the  promoter  or  lessee  or  both  may  desire  to  make,  and  after  such  further  enquiry  as  it  deems 
necessary,  it  is  satisfied  as  to  the  truth  of  the  representation,  grant  a  license  to  any  person  to  use  the 
tramway  conformably  to  this  Act,  and  to  the  order  and  the  rules  made  under  this  Act,  subject  to  the 
following provisions, namely:— 

  (a) the license shall be for a period not less than one year or more than three years from the date of 
the license, but the Government may in its discretion renew it; 

  (b) the  license  shall  be  to  use  the  whole  of  the  tramway  for  the  time  being  opened  for  public 
traffic,  or  such  part  or  parts  of  the  tramway  as  the Government, having  regard  to  the  cause  for 
granting the license, thinks fit; 

  (c) the  license  shall  specify  the  number  of  carriages  which  the  licensee  shall  run  upon  the 
tramway, the mode in which, and times at which, the carriages shall be run, the tolls to be paid to the 
promoter or lessee by the licensee for the use of the tramway, and the tolls, being those for the time 
being leviable by the promoter or lessee, which the licensee may demand and take for the use of his 
carriages; 

  (d) the  licensee  and  his  officers  and  servants  shall  permit  one  person,  duly  authorized  for  that 
purpose by the promoter or lessee, to travel free of toll in or upon each carriage of the licensee run 
upon the tramway for the whole or any part of a journey; 

  (e) any provision of this Act, or of the order or rules made under this Act, relating to the functions 
of a servant of a promoter or lessee shall be construed, so far as may be, as referring to a servant of 
the licensee; and 

  (f) the Government may  revoke,  alter  or  modify  the  license  for  any  cause  sufficient  in  its 
opinion to warrant the revocation, alteration or modification thereof. 

18. **Licensee to give to promoter or lessee an account of traffic.**—A  licensee  shall,  on 
demand, give to an officer or servant authorised in that behalf by the promoter or lessee an exact account 
in writing, signed by the licensee, of the number of passengers, or number or quantity of goods, conveyed 
by any and every carriage used by him on the tramway. 

###DISCONTINUANCE OF TRAMWAYS 

19. **Cessation  of  powers  of  promoter  and  lessee  on  discontinuance  of  tramway.**—If 
it is proved to the satisfaction of the Government, at  any  time  after  the  opening  of  a  tramway  for 
public traffic,  that  the  working  of  the  tramway,  or  any  part  thereof,  has  been  practically 
discontinued,  for  the  space  of  three  months,  without  a  reason  sufficient,  in  the  opinion  of  the 
Government, to  warrant the  discontinuance, the Government, if it thinks fit,  may, 
by    notification  in  the  Official  Gazette,  declare  that  the  powers  of  the  promoter  and  of  the  lessee,  if 
any,  in  respect  of the  tramway  or  the  part  thereof of  which  the  working  has  been  so  discontinued, 
shall, from the date of the notification, be at an end; and thereupon the said powers shall cease and 
determine,  except  in  so  far  as  they  may  be  purchased  by  a  local  authority  in  manner  by  this  Act 
provided. 

20. **Powers  of  road-authority  on  cessation  of  powers  of  promoter.**—(1) Where  a  notification 
has been published under  section 19, the road-authority  may, at any time after the expiration of two 
months  from  the  date  of  the  notification,  remove  the  tramway  or  part  of  the  tramway  of  which  the 
working has been so discontinued, and use the materials thereof in reinstating the road. 

(2) The promoter shall pay to the road-authority the cost incurred by that authority in removing the 
tramway or the part thereof and in reinstating the road. 

(3) The cost shall be certified by an officer of the road-authority, and his certificate, countersigned by 
the District Magistrate, shall be conclusive proof as to the cost incurred. 

(4) If the  promoter  does not  pay the  amount so certified within one  month after the  delivery to 
him of the certificate or of a copy thereof, the road-authority may, without any previous notice to the 
promoter  and  without  prejudice  to  any  other  remedy  which  it  may  have  for  the  recovery  of  the 
amount, sell and dispose of such materials of the tramway or part thereof removed as it has not used 
in reinstating the road, either by public auction or by private sale, and for such sum or sums, and to 
such person or persons, as it thinks fit, and may, out of the proceeds of the sale, pay and reimburse 
itself the amount of the cost aforesaid and of the expenses of the sale, and shall pay over the residue 
(if any) of the proceeds of the sale to the promoter. 

###INSOLVENCY OF PROMOTER 

21. **Proceedings in  case of  insolvency  of promoter.**—(1) If, at any time after the opening of a 
tramway in a circle for public traffic, it appears to the road-authority or local authority of the circle 
that  the  promoter  of  the  tramway  is  insolvent,  so  that  he  is  unable  to  maintain  the  tramway,  or  to 
work  it  with  advantage  to  the  public,  and  either  of  those  authorities  makes  a  representation  to  that 
effect to the Government, the Government may,  if  after  considering  any  statement  which  the 
promoter may desire to make, and after such further enquiry as it deems necessary, it is satisfied as to 
the truth of the representation, declare, by notification in the Official Gazette, that the powers of the 
promoter shall, at the expiration of six months from the publication of the notification, be at an end; 
and the powers of the promoter shall cease and determine at the expiration of that period, except in 
so far as they may be purchased by a local authority in manner by this Act provided. 

(2) Where a notification has been published under sub-section (1), the road-authority may, at any 
time  after  the  expiration  of  six  months  from  the  date  thereof,  remove  the  tramway  in  the  same 
manner, and subject to the same provisions as to the payment of the cost of the removal and to the 
same remedy for recovery of the cost, in every respect as in cases of removal under section 20. 

###PURCHASE OF TRAMWAYS 

22. **Future  purchase  of  undertaking  by  local  authority.**—(1)  Where  the  promoter  of  a 
tramway in a circle is not the local authority, the local authority, with the previous sanction of the 
Government, may— 

  (a) within such limits of time as may be specified in this behalf in the order, or 

  (b) if a time was not specified in the order, then within six months after the expiration of a period 
of  twenty-one  years  from  the  date  of  the  order,  and  within  six  months  after  the  expiration  of  every 
subsequent period of seven years, or 

  (c) within two months after the publication of a notification under section 19 or within six months 
after the publication of a notification under section 21, 

by  notice  in  writing,  require  the  promoter  to  sell  to  the  local  authority  his  undertaking  or  the  part 
thereof  which  is  within  the  circle  of  the  local  authority;  and  thereupon  the  promoter  shall  sell  the 
same  upon  the  terms  specified  in  the  order,  or,  if  the  terms  were  not  specified  in  the  order,  then 
upon the terms of paying the then value of the undertaking or of the part thereof, exclusive of any 
allowance for past or future profits of the undertaking or any compensation for compulsory sale or 
other consideration whatsoever. 

(2) A  requisition  shall  not  be  made  under  sub-section  (1)  unless  the  making  thereof  has  been 
approved by the local authority in manner prescribed. 

(3) When a sale has been made under this section, all the rights, powers and authorities of the 
promoter  in  respect  of  the  undertaking  or  part  thereof  sold,  or,  where  a  notification  has  been 
published  under  section  19  or  section  21,  all  the  rights,  powers  and  authorities  of  the  promoter 
previous to the  publication of the notification in  respect of the undertaking or part thereof sold, 
shall be transferred to the authority to whom the undertaking or part has been sold, and shall vest 
in,  and  may  be  exercised  by,  that  authority  in  the  same  manner  as  if  the  tramway  had  been 
constructed by it under an order made under this Act. 

(4) Subject to, and in accordance with, the preceding provisions of this section, two or more local 
authorities may jointly purchase an undertaking or so much thereof as is within there circles. 

###WORKING OF TRAMWAYS OWNED BY LOCAL AUTHORITIES 

23. **Lease  of, or working  of, tramway  by  local authority.**— (1) When a local authority has 
under the authority of an order completed a tramway, or has under the provisions of this Act or of 
an  order  acquired  possession  of  a  tramway,  it  may,  by  a  lease  to  be  approved  by  the 
Government, let  to  any  person  the  right  of  user  of  the  tramway  and  of  demanding  and  taking  the 
authorized tolls. 

(2) On the determination of a lease the local authority may from time to time let the right for such 
further term and on such conditions as the Government may approve. 

(3) Every  lease  made  under  this  section shall imply  a  condition  of  re-entry  if  at  any  time  after the 
making  thereof  it  is  proved  to  the  satisfaction  of  the Government that  the  lessee  has  practically 
discontinued  the  working  of  the  tramway  leased,  or  of  any  part  thereof,  for  the  space  of  one  month 
without a reason sufficient, in the opinion of the Government, to warrant the discontinuance. 

(4) Notice of the intention of the local authority to make a lease shall be given in manner prescribed. 

(5) If  the  local  authority  cannot  by  means  of  a  lease  obtain  what it  deems  to  be  a  fair  rent  for  the 
tramway,  it  may  itself,  with  the  previous  sanction  of  the Government and  for  such  term  as  the 
Government directs,  place  and  run  carriages  upon the  tramway,  and  demand  and  take  the  authorised 
tolls in respect of the use of the carriages. 

###RULES 

24. **Power to make rules.**—(1)  In  addition  to  any  other  power  to  make  rules  expressly  or  by 
implication conferred by this Act, the Government may make rules consistent with this Act— 

  (a) as to the form in which an application for an order shall be made; 

  (b) as to the costs to be paid by an applicant in respect of an order, and the time when, and the place 
where, those costs shall be paid; 

  (c) as to the payment of money or lodgment of securities, by way of deposit, by the applicant for an 
order before the order is published under section 6, sub-section (4), or a further order is made under 
section  8;  the  investment  of  money  so  paid;  the  disposal  of  interest  or  dividends  from  time  to  time 
accruing  due  on  money  or  securities  so  paid,  lodged  or  invested;  the  application  of  the  money  or 
securities  or  the  produce  thereof  to  the  discharge  of  any  liability  incurred  by  the  promoter;  and  the 
forfeiture, repayment or return of the money or securities; 

  (d) as  to  the  plans  and  sections  of  any  works  to  be  deposited  by  applicants  for  orders  or  by 
promoters; 

  (e) for regulating the use of steam-power or any other mechanical power or electrical power on a 
tramway; 

  (f) as  to  any  matter  specified  in  section  7,  sub-section  (2),  clauses  (c),  (d),  (e),  (j)  and  (k),  as  a 
matter which may be provided for in an order, when that matter has not been so provided for, or has 
not, in the opinion of the Government, been effectually so provided for; 

  (g) as to the periodical submission, by promoters, lessees and licensees, of accounts of traffic and 
receipts  to  the Government or  as  that  Government  directs,  and  as  to  the  forms  in  which  those 
accounts are to be submitted; 

  (h) as to the accidents of which report is to be made to the Government or as that Government 
directs; 

  (i) as to any matter respecting which rules may be made under this section by a local authority or a 
promoter or lessee; and 

  (j) generally, as to any other matter or thing in respect of which it may seem to the Government 
to be expedient to make rules for carrying out the purposes of this Act. 

(2) A local authority may, from time to time, with the previous sanction of the Government, 
make rules consistent with this Act and with the order and any rules made by the Government 
under this Act, for regulating— 

  (a) the  rate  of  speed  to  be  observed  in  travelling  upon  a  tramway  within  the  circle  of  the  local 
authority; 

  (b) the use of animal power on the tramway; 

  (c) the  distances  at  which  carriages  using  the  tramway  are  to  be  allowed  to  follow  one  after  the 
other; 

  (d) the stopping of carriages using the tramway, and the notice to be given to the public of their 
approach; 

  (e) the  manner  in  which  carriages  using  the  tramway  after  sunset  and  before  sunrise  are  to  be 
lighted; 

  (f) the traffic on roads along or across which the tramway is laid; 

  (g) the number of passengers which may be carried in any carriage; 

  (h) the licensing and control of drivers, conductors and other persons having charge of the carriages 
of the promoter or lessee or a licensee; and 

  (i) generally, the mode of use of the tramway. 

(3) The  promoter  or lessee  of  a  tramway  may,  from  time  to  time,  with  the  previous  sanction  of  the 
Government, make rules consistent  with  this  Act  and  with  the  order  and  any  rules  made  under  this 
Act— 

  (a) for  preventing  the  commission  of  any  nuisance  in  or  upon  any  carriage,  or  in  or  against  any 
premises, belonging to him; and 

  (b) for regulating the travelling in any carriage belonging to him. 

(4) The Government may cancel any rule made by a local authority or by a promoter or lessee under 
this section. 

25. **Power to impose penalty by rule.**— The authority making any rule under section 24 may direct 
that a breach of it shall be punishable with fine which may extend— 

  (a) if the authority making the rule is the Government, to two hundred rupees, and 

  (b) if  that  authority  is  a  local  authority  or  a  promoter  or  lessee,  to  twenty  rupees;  and  when  the 
breach is a continuing breach, with a further fine which may extend— 

  (c) if the authority making the rule is the Government, to fifty rupees, and 

  (d) if that authority is a local authority of a promoter or lessee, to five rupees, for every day after 
the first during which the breach continues. 

26. **Procedure for making, and publication of, rules.**—(1) Every authority having power to make 
rules under any section of this Act shall, before making the rules, publish a draft of the proposed rules for 
the information of persons likely to be affected thereby. 

(2) The publication shall be made, in the case of rules made by the Government, in such manner as 
may in its opinion be sufficient for giving information to persons interested, and, in the case of rules made 
by a local authority or by a promoter or lessee, in manner prescribed. 

(3) There shall be published with the draft a notice specifying a date, not earlier than the expiration of 
one month after the date of publication, at or after which the draft will be taken into consideration. 

(4) The authority shall receive and consider any objection or suggestion which may be made by any 
person with respect to the draft before the date so specified. 

(5) The  publication  in  the  Official  Gazette  of  a  rule  purporting  to  be  made  under  this  Act  shall  be 
conclusive proof that it has been duly made. 

###OFFENCES 

27. **Penalty  for  failure  of  promoter,  lessee  or  licensee  to  comply  with  act  or  order.**—If  a 
promoter— 

  (a) constructs or maintains a tramway otherwise than in accordance with the order, or 

  (b) opens  the  tramway  for  traffic or  permits  it  to  be so  opened,  before it  has  been inspected  and 
certified in manner required by section 12, or 

  (c) fails  to  observe  any  requirement  or  condition  of  the  order  for  neglect  or  breach  whereof  no 
penalty has been expressly provided in the order, 

or if a promoter, lessee or licensee runs a carriage on a tramway otherwise than in accordance with the 
order, 

  he shall (without prejudice to the enforcement or specific performance of the requirements of this Act 
or of the order, or to any other remedy which may be obtained against him in a Court of Civil Judicature), 
on  camplaint  made  by  the Government or  by  the  local  authority  or  road-authority  or  by  the  District 
Magistrate or, with the previous sanction of the District Magistrate, by any person injuriously affected by 
the act or omission, be punished with fine which may extend to two hundred rupees, and in the case of a 
continuing offence to a further fine which may extend to fifty rupees for every day after the first during 
which the offence continues to be committed. 

28. **Penalty  for  obstructing  promoter  in  exercise  of  his  powers.**—If  any  person  without  lawful 
excuse, the burden of proving which shall lie upon him, wilfully obstructs any person acting under the 
authority of the promoter in the lawful exercise of his powers in constructing or maintaining a tramway, 
or injures or destroys any mark made for the purpose of setting out the line of the tramway, he shall be 
punished with fine which may extend to fifty rupees. 

29. **Penalty for interfering with tramway.**—If  any  person  without  lawful  excuse,  the  burden  of 
proving which shall lie upon him, wilfully does any of the following things, namely:— 

  (a) interferes with, removes or alters any part of a tramway constructed under this Act, or of the 
works connected therewith, or 

  (b) places  or  throws  upon  or  across  any  such  tramway  any  wood,  stone,  refuse  or  other 
thing, or 

  (c) does  anything  in  such  a  manner  as  to  obstruct  any  carriage  using  any  such  tramway, 
or 

  (d) abets within the meaning of the Indian Penal Code (45 of 1860) the doing of, or attempts to 
do, anything mentioned in clause (a), clause (b) or clause (c), 

he shall (without prejudice to any other remedy which may be obtained against him in a Court of Civil 
Judicature) be punished with fine which may extend to one hundred rupees. 

30. **Penalty  for  using  tramway  with  carriage  having  flange-wheels.**—If  any  person, 
except under a lease from, or by agreement with, the promoter, or under license from the Government 
granted under this Act, uses on a tramway, otherwise than as permitted by section 14, a carriage having 
flange-wheels or other wheels suitable to run on the rail of the tramway, he shall be punished with fine 
which may extend to two hundred rupees. 

31. **Penalty for evading payment of proper toll.**—(1) If any person travelling or having travelled in 
a carriage of the promoter or lessee or of a licensee evades or attempts to evade payment of toll, or if any 
person having paid toll for a certain distance wilfully proceeds in any such carriage beyond that distance 
and does not pay the additional toll for the additional distance or attempts to evade payment thereof, or if 
any  person  wilfully  refuses  or  neglects  on  arriving  at  the  point  to  which  he  has  paid  toll  to  quit  the 
carriage, he shall be punished with fine which may extend to ten rupees. 

(2) When a person commits an offence under this section and refuses on demand of a servant of the 
promoter,  lessee  or  licensee  to  give  his  name  and  residence,  or  gives  a  name  or  residence  which  the 
servant has reason to believe to be false, he may be arrested and taken to the nearest police-station by the 
servant or any person whom the servant may call to his aid. 

(3) When the person is taken to the police-station he shall with the least possible delay be forwarded 
to the nearest Magistrate, unless his true name and residence are ascertained, in which case he shall be 
released on his executing a bond for his appearance before a Magistrate if so required. 

32. **Penalty for taking or sending dangerous or offensive goods without giving notice.**— If  any 
person  takes  or  sends  by  a  tramway  any  goods  of  a  dangerous  or  offensive  nature  without  giving 
the notice required by section 16, he shall be punished with fine which may extend to fifty rupees. 

33. **Penalty  for  licensee  not  giving  to  promoter  or  lessee  an  account  of  traffic  or  giving 
false account.**— (1) If a licensee fails on demand to give the account mentioned in section 18, or, 
with intent to evade the payment of tolls, gives a false account when he is called upon to give an 
account under that section, he shall be punished with fine which may extend to fifty rupees. 
 
(2) The fine shall be in addition to any tolls payable by the licensee to the promoter or lessee in respect 
of the passengers or goods conveyed by the carriage or carriages used by the licensee on the tramway. 

34. **Saving of prosecutions under other laws.**—Nothing  in  this  Act  shall  prevent  a  person 
from  being  prosecuted  under  any  other  law  for  an  act  or  omission  which  constitutes  an  offence 
against this Act or the rules made under it, or from being liable under that other law to any other 
or higher punishment or penalty than that provided by this Act or the rules made under it: 

  Provided that a person shall not be punished twice for the same offence. 

###SETTLEMENT OF DIFFERENCES 

35. **Differences between promoters or lessees and authorities.**—(1)  If  any  difference  arises 
between the promoter or lessee on the one hand and the Government, or the local authority, or the road-
authority, or a person having the charge of any sewers, drains, telegraph-lines, gas-pipes, water-pipes or 
other things in or on land occupied by the tramway, on the other hand, with respect to any interference or 
control exercised or claimed to be exercised by, or on behalf of, either party by virtue of this or any other 
Act, or of the order or the rules made under this Act, or with respect to the propriety of, or the mode of, 
the  execution  of  any  work,  or  with  respect  to  any  compensation  to  be  made  by  or  to  the  promoter  or 
lessee, or on the question whether any work is such as ought reasonably to satisfy the Government or 
the road-authority or both, or with respect to any other subject or thing regulated by, or comprised in, this 
Act or the order or the rules made under this Act, and not otherwise expressly provided for therein, the 
matter in difference shall, except where the parties elect to proceed under section 523 of the Code of Civil 
Procedure, (14 of 1882) be settled, on the application of either party, by a referee. 

(2) Where the difference is— 

  (a) between the promoter or lessee on the one hand and the Government, either as such or as the 
road-authority, on the other, or 

  (b) between the promoter on the one hand and the local authority on the other, with respect to the 
sum to be paid by the local authority for an undertaking or part of an undertaking which that authority 
has required the promoter to sell under section 22, 

the referee shall be the District Court within the jurisdiction of which the tramway is situate, or, where the 
tramway is within the jurisdiction of more than one District Court, the District Court within the 
jurisdiction of which the greater part of the tramway is situate. 

(3) In other cases the referee shall be appointed by the Government. 

(4) Except  where  the  referee  is the  District  Court, the  powers and  procedure  of  the  referee  may  be 
prescribed. 

(5) In the case of a difference between a promoter on the one hand and a local authority on the other, 
with  respect  to  the  sum  to  be  paid  by  the  local  authority  for  an  undertaking  or  part  of  an  undertaking 
which that  authority  has  required  the  promoter to  sell  under section  22, an  appeal  shall  lie to the  High 
Court from the award of the referee as from an original decree of the District Court. 

(6) In the case of every other difference the award of the referee shall be final. 

###RECOVERY OF TOLLS 

36. **Recovery of moneys due from promoters and, in certain cases, from lessees.**—Any  of  the 
following moneys, namely, any rent due to a local authority from a lessee, any penalty recoverable from a 
promoter or lessee under an order, any sum payable by a promoter or lessee under an award of a referee, 
the cost of the performance under this Act by the Government or by a local authority or road-authority 
of any work required by this Act or by an order to be done by a promoter, and the cost incurred by a road-
authority  in  removing  a  tramway  and  reinstating  a  road  under  this  Act,  may,  without  prejudice  to  any 
other remedy that the authority to which the money is due may have by suit or otherwise, be recovered by 
that  authority,  on  application  made  in  this  behalf  to  the  Collector,  as  if  the  sum  due  were  an  arrear  of 
land-revenue due by the promoter or lessee or his surety (if any): 

  Provided that nothing in this section shall authorize the arrest of the promoter or lessee or his surety in 
execution of any process issued by the Collector. 

37. **Recovery of tolls from licensees.**—(1) If a licensee fails to pay on demand the tolls due for 
the  use  of  a  tramway,  the  promoter  or  lessee  to  whom  the  tolls  are  due  may,  without  prejudice  to  the 
remedy  which  he  may  have  by  suit,  apply  to  a  Magistrate  to  recover  the  amount  of  the  tolls,  and  the 
Magistrate may, after giving notice to the licensee, if possible, and allowing him an opportunity of being 
heard, proceed to recover the amount by distress and the sale of any carriages or other moveable property 
of the licensee which may be found on the tramway or on premises connected therewith. 

(2) When a licensee has failed to pay on demand the tolls due from him, the promoter or lessee to 
whom the tolls are due may seize any carriage or other moveable property of the licensee on the tramway 
or on premises connected therewith, and detain the same for forty-eight hours unless the tolls are sooner 
paid. 

(3) When application is made to a Magistrate under sub-section (1), he may make an interim order of 
distraint pending his final decision. 

38. **Recovery  of  tolls  from  passengers.**—Any toll due to a promoter, lessee or licensee from a 
passenger  may  be  recovered  either by  suit  or,  on  application to  a  Magistrate  having  jurisdiction  within 
any  local area in  which  any  part  of  the tramway  is laid,  by  distress and  sale of any  moveable  property 
belonging to the passenger within the local limits of the jurisdiction of the Magistrate. 

###SAVINGS 

39. **Promoter to have right of user only.**—(1) Notwithstanding anything contained in this Act, or in 
an order or any rule made under this Act, a promoter shall not acquire any right other than that of user 
only over a road along or across which he lays a tramway, nor shall anything contained in this Act, or in 
an order or any rule made under this Act, exempt the promoter of a tramway, or any other person using 
the tramway, from the payment of such charges as may lawfully be levied in respect of the use of a road 
or bridge along or across which the tramway is laid. 

(2) The  State  Government  may,  if  it  thinks  fit,  fix  at  which  a  promoter,  lessee  or  licensee  may 
compound for the charges payable in respect of the use of a road or bridge. 

40. **Saving of power over roads traversed by tramways.**—(1) Nothing in this Act, or in an order or 
any  rule  made  under  this  Act,  shall  take  away  or  abridge  any  power  which  a  road-authority,  local 
authority  or  other  person  has  by  law  to  break  up,  widen,  alter,  divert  or  improve  a  road,  railroad  or 
tramway along or across which a tramway is laid. 

(2) The  road-authority,  local  authority  or  other  person  executing  any  work  referred  to  in 
sub-section (1) shall  not  be  liable  to  pay  to  a  promoter,  lessee  or licensee  any  compensation  for  injury 
done to a tramway by the execution of the work or for loss of traffic occasioned by the reasonable use of 
any power lawfully exercised for the execution thereof. 

41. **Saving of power of local authority and police to regulate traffic on roads.**—Nothing in 
this Act, or in an order or any rule made under this Act, shall affect the powers of a local Authority or of a 
Magistrate or police-officer to regulate the passage of traffic along or across a road along or across which 
a tramway is laid; and the authority Magistrate or officer aforesaid may exercise its or his powers as well 
on as off the tramway and with respect as well to the traffic of a promoter, lessee or licensee as to the 
traffic of other persons. 

###SUPPLEMENTAL PROVISIONS 

42. **Promoters,  lessees  and  licensees  to  be  responsible  for  all  injuries.**—A  promoter, 
lessee  or  licensee  shall  be  answerable  for  all  injuries  happening  through  his  act  or  default,  or 
through the act or default of any person in his employment, by reason or in consequence of any 
of  his  carriages  or  works,  and  shall  save  harmless  all  authorities  and  persons  collectively  and 
individually, and their officers and servants, from all damages and costs in respect of injuries so 
happening. 

43. **Want of funds not sufficient reason for default.**—For the purposes of this Act want of funds 
shall not be deemed to be a sufficient reason for the suspension of the construction, or the discontinuance 
of the working, of a tramway by a promoter or lessee. 

44. **Power to exempt from municipal taxation.**—When  a  tramway  is  constructed  under  this 
Act  within  the  limits  of  a  municipality,  the  State  Government  may  exempt  the  animals,  plant, 
rolling-stock,  yards,  workshops,  engine-sheds, electrical generating stations or sub-stations and 
depots of the promoter, lessee or licensee, for such period as it thinks fit, from all or any municipal taxes 
leviable within those limits. 

45. **Application by local authorities of local funds to tramways.**—(1) The fund to or with the 
control or management of which the local authority of a municipality, cantonment or district is entitled or 
entrusted  shall,  notwithstanding  anything  in  any  enactment  respecting  the  purposes  to  which  that  fund 
may be applied be applicable, subject to the control of the appropriate Government, to the payment of 
expenses incidental to the exercise of the powers and functions which may be vested in or exercised by a 
local authority under this Act. 

(2) The  fund  shall  also  be  applicable,  with  the  previous  sanction  of  the appropriate 
Government, to a guarantee of the payment of interest on money to be applied, with the concurrence in 
writing of the local authority, within the limits of the local area under its control, to any of the purposes to 
which the fund might be applied by the local authority under  subsection (1). 

(3) In this section, “the appropriate Government” means the Government, Central or State, whose 
executive authority extends over the local authority in question.

46. **Extension of Act to existing tramways.**— The Government may, with the consent of the local 
authority and road-authority and of the promoter and his lessee (if any), extend any part of this Act, or 
any rules made under this Act, either with or without modification, to the whole or any part of a tramway 
constructed,  or  authorised  by  the Government to be constructed,  before  the  passing  of  this  Act,  and 
may withdraw any part of the Act or any rules so extended. 

47. **Prohibition  of  construction  of  tramways  except  under  this  Act.**—  (1)  A  tramway  of 
which the construction has not been authorised by the Government before the passing of this Act shall 
not, after the passing of this Act, be constructed for public traffic in any place to which this Act extends, 
except in pursuance of an order made under this Act. 

(2) A person constructing a tramway in contravention of sub-section (1) of this section, 

  or after  the  passing  of  this  Act  maintaining  or  using  for  public  traffic,  otherwise  than  in 
pursuance  of  an  order  made  under  this  Act,  a  tramway  which  was  not  constructed,  or  authorised 
the Government to be constructed, before the passing of this Act, 

  shall  be  liable,  on  the  complaint  of  the Government or local  authority,  to  double  the  penalty  to 
which a promoter acting otherwise than in accordance with an order is liable under section 27. 

48. **Transfer of control on exclusion of local area from circle of local authority.**— If at any time a 
local  area  comprising  a  tramway  to  which  this  Act  or  any  part  thereof  or  any  rule  thereunder  applies 
ceases to be included in the circle of a local authority, the functions of that authority under this Act or the 
part thereof or the rule thereunder, and under the order (if any), shall, in respect of that local area, devolve 
on the Government or, if that Government so directs, on the local authority of the circle in which the 
tramway has been included. 

49. *[Explanation and amendment of section 54 of Railway Act.] Rep. by the Indian Railways Act,* 1890 
(9 of 1890), s. 2 *and the First Schedule.*

50. **Powers of Government exercisable from time to time.**—All powers conferred by this Act on 
any Government may be exercised from time to time as occasion requires.